Shoe Zone has announced a drop in both revenues and profits for its most recent financial year, influenced by a second half that was affected by “weakening consumer confidence and unseasonal weather conditions.”
For the year ending 28 September 2024, the footwear retailer recorded revenues of £161.3m, a decrease of 2.6% compared to £165.6m the previous year.
Pre-tax profits decreased to £10.1m, down 37.8% from £16.2m a year earlier. In-store sales also fell to £126.1m from £134.8m, mainly due to diminished foot traffic and external influences such as atypical weather patterns, particularly during summer.
Shoe Zone chair Charles Smith commented: “Shoe Zone had a good year, essentially split into two halves. The first six months saw strong and consistent trading, followed by disappointing store sales, due to the weakening of consumer confidence and unseasonal weather conditions, particularly during peak summer.”
“That said, key back-to-school sales in the second half were positive and exceeded last year’s performance, as did digital sales, which experienced strong growth for the full period.”
The retailer underwent several changes in its store portfolio over the year, closing 53 locations, opening 27 new stores, and refurbishing 28 to align with a new format.
Digital sales improved by 13.9% to £35.2m during this period, fueled by the launch of free next-day delivery and robust sales through Amazon.
Shoe Zone also contended with escalating costs related to shipping, energy, wages, and store renovations, which further impacted profits. The company highlighted that increased National Insurance and National Living Wage expenses significantly affected its financial outcomes.
After a profit warning was issued in December, Shoe Zone’s share price plummeted by 60% over the past year, reaching a three-year low at the start of 2025.
As it looks to the future, Shoe Zone remains dedicated to its store refit and relocation program, projected to be finalized by 2026.
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